02306cam a22002657 4500001000700000003000500007005001700012008004100029100002300070245010100093260006600194490004200260500001800302520108100320530006101401538007201462538003601534690014401570690011201714700002001826710004201846830007701888856003801965856003702003w10202NBER20180524140705.0180524s2004 mau||||fs|||| 000 0 eng d1 aWoodward, Susan E.10aBenchmarking the Returns to Ventureh[electronic resource] /cSusan E. Woodward, Robert E. Hall. aCambridge, Mass.bNational Bureau of Economic Researchc2004.1 aNBER working paper seriesvno. w10202 aJanuary 2004.3 aWe describe a new index of the current and historical returns to venture-type capital. The conceptual basis for the index is the value of a continuously reinvested value-weighted portfolio of all venture-backed and similar pre-public companies. It provides a metric for private equity comparable to the S&P 500 for public equity. We build the index from valuations revealed in episodic transactions in the companies' shares - private placements of new rounds of equity funding, IPOs, acquisitions, and liquidations. Our approach to dealing with the episodic nature of the data is similar to the one used in constructing indexes of real-estate value from transaction data for individual properties. We have extended earlier sources of data to deal with selection bias - we tracked down unfavorable valuations that were less likely to be reported in the earlier data. We also use econometric techniques to handle the remaining selection bias. The resulting index has important uses in marking venture portfolios to market and in assessing the performance of venture investments. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aG24 - Investment Banking • Venture Capital • Brokerage • Ratings and Ratings Agencies2Journal of Economic Literature class. 7aG12 - Asset Pricing • Trading Volume • Bond Interest Rates2Journal of Economic Literature class.1 aHall, Robert E.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w10202.4 uhttp://www.nber.org/papers/w1020241uhttp://dx.doi.org/10.3386/w10202